The logic is simple – spend less on luxuries and save more. But what actual difference would skipping a cafe breakfast make to your savings?

Here you can see an estimate of how long it would take you to save for a 20% deposit for a median-priced house in each capital city (and yes, you can get a loan with a smaller percentage deposit but this would usually then require mortgage insurance):

So, on one hand, it is true every little bit counts. On the other, the time involved to actually save for a deposit in some cities is so long the reduction in time is effectively meaningless to many people.

In 2015, a survey of Australian’s saving habits by Suncorp found $98 to be the national weekly average. If you’re saving 100 dollars a week for a house in Sydney, the most expensive city, by finding an extra $22 per week you can shave a good 3.5 years off the time it’d take to save for a deposit. However, the total time is still 23 years.

Another assumption implicit in these sorts of criticisms of Generation Y is that the generation is generally worse at saving money, instead choosing to spend money on iPhones, holidays and lattes.

Interestingly, the same survey of spending habits found that younger people (defined as younger than 35) saved more per week than older people, even when comparing families with children. This may well be due to younger people living at home but it still indicates millennials have no issues with saving money.

Further, all age groups, including younger people, are saving more than they used to, according to a comparison of 2004 and 2010 ABS figures by the Grattan Institute:

Another comparison of ABS figures shows younger people now are spending a greater proportion of their income on housing rather than other household expenditure categories, such as food, alcohol, or recreation. You can read more detail on this, and on the coming changes in apartment affordability, in Greg Jericho’s excellent column on the topic.